Alphabet's health and life science subsidiary Verily announced the "Debug Project," an initiative aimed at reducing mosquito-spread diseases through a new, more automated approach to mosquito sterilization technology. "Towards the end of 2014, some of us at Google started exploring what we could do to help solve the mosquito problem... We talked with experts from around the world working on many different approaches. One stood out to us: the the sterile insect technique... We decided to focus on the problem of reducing that cost [of sterilization technologies] with automation. We're using Verily's combination of data analytics, sensors, lab automation technology, and scientific expertise to solve specific issues around mass-production and sex-sorting of mosquitoes, and to enable efficient and targeted releases. We also decided to focus on one particular mosquito: Aedes aegypti. While there are thousands of different species of mosquito, Aedes aegypti is the primary vector of dengue, Zika, chikungunya and yellow fever, and there aren't good ways to control this mosquito. The Debug Project is still early... We have promising prototypes of our automated rearing, sex separation, and release systems along with new designs for sensors and traps to measure mosquito populations. We're announcing Debug today because we'll soon be ready to try these outside of our lab," the company said. Publicly traded companies in the Zika space include Sanofi (SNY), GlaxoSmithKline (GSK), Intrexon (XON), Inovio (INO), Cerus (CERS), Chembio Diagnostics (CEMI), and NewLink Genetics (NLNK). Reference Link

Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Alphabet (GOOG, GOOGL) downgraded to Underperform from Neutral at Wedbush with analyst James Dix citing concerns that the "Four Horsemen of the Search Apocalypse" -- self-identified consumers, consumer control of IP-delivered ads, payments innovation, and attention markets -- might arrive. 2. AT&T (T) downgraded to Neutral from Buy at UBS with analyst John Hodulik citing expectations for lower earnings growth. 3. Macy's (M) downgraded to Neutral from Outperform at Credit Suisse with analyst Michael Exstein saying the retailer, after outlining in August its operations and merchandising strategies, is now in an execution phase. 4. Twitter (TWTR) downgraded to Underperform from Neutral at Mizuho and to Sell from Hold at Loop Capital. 5. Galectin Therapeutics (GALT) downgraded to Sell from Buy at Roth Capital with analyst Sa'ar Yaniv citing the company's announcement that NASH-FX, GR-MD-02's Phase 2a study in NASH fibrosis, failed both primary and secondary endpoints. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.

Citi analyst Walter Pritchard believes a Salesforce (CRM) acquisition of Twitter (TWTR) is possible financially but that such a deal would put "significant constraints" on the company for the next three-plus years. The analyst sees "very little reason" for Salesforce to own Twitter and feels the acquisition "would pose a difficult decision" for CEO Marc Benioff and the board. Salesforce closed yesterday down 6%, or $4.21, to $68.42. Recode reported last night that the company is likely the only bidder left for Twitter after Disney (DIS) and Alphabet (GOOG) opted not to pursue a deal while Apple (AAPL) is unlikely. Twitter in pre-market trading is down 14% to $21.50. In order for Salesforce to avoid a shareholder vote, it would have to borrow $7.5B to fund the transaction if Twitter were valued at $20B, or $27.50-$28 per share, Pritchard tells investors in a research note. This is a level that likely constrains the company with little additional borrowing capacity for other deals, the analyst contends. He thinks the deal is "nearly impossible to do" for Salesforce should the bidding for Twitter go above $20B or $28 per share. Pritchard has a Buy rating on Salesforce with an $89 price target.

09/27/16

WEDB

09/27/16DOWNGRADEWEDBUnderperform

Alphabet downgraded to Underperform from Neutral at Wedbush

Wedbush analyst James Dix downgraded Alphabet to Underperform and lowered his price target on shares to $700 on concerns the "Four Horsemen of the Search Apocalypse" -- self-identified consumers, consumer control of IP-delivered ads, payments innovation, and attention markets -- might arrive.

09/28/16

MZHO

09/28/16DOWNGRADETarget $15MZHOUnderperform

Mizuho cuts Twitter to Underperform with $15 price target

Mizuho analyst Neil Doshi downgraded Twitter to Underperform from Neutral based on valuation. The shares are up 45% since the company reported Q2 results, primarily driven by potential buyout comments in media reports, Doshi tells investors in a research note. The stock at current levels is overvalued as Twitter's business fundamentals "have deteriorated significantly" over the past 12 months, the analyst contends. Doshi believes many of the M&A scenarios are unlikely to play out. He puts potential acquirers Salesforce (CRM) and Alphabet (GOOG, GOOGL) in the "maybe" camp, but he still has some reservations about these deals happening. The analyst believes investors of both companies would view a buyout of Twitter as negative. Doshi keeps a $15 price target for Twitter shares. The stock closed yesterday up 35c to $23.72. Loop Capital this morning also downgraded Twitter to Sell.

GOOGLAlphabet Class A

$801.23

-1.56 (-0.19%)

09/30/16

RBCM

09/30/16NO CHANGERBCM

Street underestimating Google growth outlook, says RBC Capital

RBC Capital analyst Mark Mahaney expects Google to end 2016 with "up to 20% growth," versus the Street's outlook of mid teen percentage level growth. Mahaney says that Google's growth should be boosted by "ongoing Search innovations, rising Mobile CPCs, and the growing impact of YouTube, Play & Cloud." He thinks that YouTube's revenue is growing at a 30%-40% clip. Mahaney raised his price target on the stock to $1,025 from $1,000 and keeps an Outperform rating on the shares.

After Regeneron (REGN) and Sanofi (SNY) released positive results from their Dupixent Phase 3 trials, SOLO 1 and SOLO in patients with atopic dermatitis, Roth Capital analyst Joseph Pantginis notes that clinical studies of Dupixent for additional atopic and allergic diseases are progressing and says he believes Regeneron's shares are poised for upside on upcoming catalysts. Moreover, the analyst says Regeneron has "solid" growth prospects based on approved and late stage products, deep pipeline, expansion of indications for current products, strong partners, and strong cash management. He reiterates a Buy rating and $520 price target on Regeneron's shares.

In a note to investors this morning, Leerink has updated its best ideas for 2016 from the firm's five therapeutics analysts. The list includes Alexion (ALXN), Dermira (DERM), Intra-Cellular (ITCI), Sanofi (SNY), Allergan (AGN), Alnylam (ALNY), Innate Pharma (IPHYF), The Medicines Co. (MDCO), and Ophthotech (OPHT).

GSKGlaxoSmithKline

$42.88

-0.452 (-1.04%)

09/23/16

PIPR

09/23/16INITIATIONPIPROverweight

GlaxoSmithKline initiated with an Overweight at Piper Jaffray

Piper Jaffray analyst Richard Purkiss started GlaxoSmithKline with an Overweight rating and GBP 20 price target. The company's growth is defensive and its risks are declining, Purkiss tells investors in a research note.

09/23/16

09/23/16INITIATION

On The Fly: Top five analyst initiations

Catch up on today's top five analyst initiations with this list compiled by The Fly: 1. Morgan Stanley analyst Brian Nowak initiated Activision Blizzard (ATVI) and Electronic Arts (EA), both with Overweight ratings. The analyst is bullish on the digital gaming shift away from "units sold" to a business model based on users, engagement, and digital monetization. He sees digital in-game offerings resulting in recurring and growth user bases, increased per-game engagement, and further monetization opportunities. 2. AstraZeneca (AZN) and GlaxoSmithKline (GSK) both initiated with Overweight ratings by Piper Jaffray analyst Richard Purkiss. 3. Achillion (ACHN) initiated with an Outperform by Wedbush analyst Heather Behanna, who set a $13 price target on the shares. 4. Sysco (SYY) initiated with an Underweight at Barclays and $48 price target by analyst Karen Short. 5. Five Below (FIVE), Dollar Tree (DLTR) and Dollar General (DG) all initiated with Equal Weight ratings by Barclays analyst Karen Short. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.

10/06/16

PIPR

10/06/16NO CHANGETarget $46PIPROverweight

Piper thinks Alnylam failure is positive for Ionis

Piper Jaffay analyst Joshua Schimmer thinks Alnylam Pharmaceuticals' (ALNY) "abrupt halt" of revusiran for TTR cardiomyopathy is likely a positive for Ionis Pharmaceuticals' (IONS) transthyretin program. The move "knocks out a competitive drug" while Ionis and GlaxoSmithKline (GSK) remain on their previously indicated timeline, Schimmer tells investors in a research note. The analyst at this point believes Alnylam's setback will be limited to revusiran and not read-through to other Gal-Nac programs or other TTR cardiomyopathy or polyneuropathy programs. He keeps an Overweight rating on Ionis with a $46 price target,

RBC Capital analyst Michael Yee said his conversations with doctors leads him to think two dolutegravir HIV "doublet" studies being conducted by GlaxoSmithKline (GSK) and ViiV Healthcare - Glaxo's joint venture with Pfizer (PFE) and Shionogi - are likely to work and present an underappreciated risk to Gilead's (GILD) HIV franchise. Talks with investors lead Yee to believe few are even aware of this risk and that the consensus view is underestimating the probability these non-inferiority trials will work. Arguing that the consensus view should factor in more conservative assumptions for Gilead's HIV business post 2018 due to this risk, Yee cut his price target on Gilead to $95 from $105, but keeps an Outperform rating on the shares.

XONIntrexon

$28.78

-0.13 (-0.45%)

05/11/16

STFL

05/11/16NO CHANGETarget $57STFLBuy

Intrexon appears to be making incremental progress, says Stifel

Stifel analyst Thomas Shrader acknowledges that Intrexon's Q1 results press release and associated call were "highly complex" and the stock remains "highly polarizing," but he believes the company is making incremental progress, that the potential deployment of its mosquitoes to combat Zika seems to be advancing, and noted that its gas to liquid bioconversion programs were reported to be in the "red zone" of development. The company appears to be increasingly focused on non-therapeutic and non-medical projects and Shrader continues to view its gas to liquid energy conversion program as the highest value opportunity at Intrexon, he told investors in a post-earnings research note. The firm keeps a Buy rating and $57 price target on Intrexon shares.

JMP Securities analyst Jason Butler notes that a bipartisan group of Florida House members and the leaders of the state's Pinellas County asked the federal government to grant a waiver that would allow the use of Intrexon's Friendly Aedes for Zika eradication efforts. The analyst says that a waiver could result in "nearer term government orders." He keeps a $42 price target and Outperform rating on Intrexon.

07/15/16

JMPS

07/15/16NO CHANGETarget $42JMPSOutperform

JMP says ZIOPHARM trial death doesn't read through to other Intrexon programs

JMP Securities analyst Jason Butler said he views the patient death in ZIOPHARM's (ZIOP) Ad-RTS-IL-12 GBM trial as "possibly or even likely due to the study drug" and acknowledges the need for caution regarding the potential safety concerns of Ad-RTS-IL-12. However, while the trial death raises questions, Butler contends it has no read through to partner Intrexon's (XON) broader oncology programs. The analyst, who notes there are multiple other programs in or entering the clinic under the collaborations between ZIOPHARM and Intrexon, keeps an Outperform rating and $42 price target on Intrexon shares.

05/03/16

05/03/16INITIATION

On The Fly: Top five analyst initiations

Catch up on today's top five analyst initiations with this list compiled by The Fly: 1. Wal-Mart (WMT) initiated with an Underperform at RBC Capital due to a negative risk/reward ratio, citing the company's massive size, intensifying competition and the shift towards e-commerce. 2. Costco (COST) initiated with an Outperform at RBC Capital with the firm saying that the company's membership fees provide it with "a growing, high margin revenue stream," while it has " some of the best/most consistent customer traffic growth in all of retail." 3. Kroger (KR) initiated with a Neutral at SunTrust. 4. H&R Block (HRB) initiated with a Neutral at Sterne Agee CRT. 5. Intrexon (XON) initiated with an Outperform at JMP Securities by analyst Jason Butler, who said Intrexon has a "highly scalable" business model and has achieved technological and regulatory validation in the areas of food, health, and the environment. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.

INOInovio

$9.43

0.03 (0.32%)

01/22/16

MAXM

01/22/16NO CHANGEMAXM

Inovio mentioned positively at Maxim

08/09/16

MAXM

08/09/16DOWNGRADEMAXMHold

Inovio downgraded to Hold from Buy at Maxim

02/19/16

PIPR

02/19/16NO CHANGETarget $31PIPROverweight

Piper highlights Inovio amid spread of Zika

Piper Jaffray analyst Charles Duncan highlights Inovio Pharmaceuticals as the Zika virus spreads, calling the company a leader among potential vaccine players. The company's SynCon technology has a "higher than usual probability of clinical success" in Zika given its experience with other flaviviruses and tropical diseases, Duncan tells investors in a research note. He has an Overweight rating on Inovio with a $31 price target. The stock closed yesterday down 47c to $6.45.

Cantor analyst Bryan Brokmeier recommends that investors buy Cerus' stock after the FDA recommended that all U.S. blodd centers implement either blood testing for the Zika Virus or FDA-approved pathogen-reduction technology. The analyst says that Cerus is the sole provider of the latter technology. He keeps a $9 price target and Buy rating on the shares.

08/26/16

CANT

08/26/16NO CHANGETarget $9CANTBuy

Cantor says buy Cerus following FDA industry guidance

Cantor analyst Bryan Brokmeier says investors should buy shares of Cerus following the FDA's revised industry guidance recommending all blood centers across the U.S. implement either blood testing for the Zika Virus or FDA approved pathogen-reduction technology, of which the company has the only available technology. Further, the analyst believes this is a "big step" toward accelerated adoption of Cerus' INTERCEPT platform. Brokmeier reiterates a Buy rating and $9 price target on the shares.

08/05/16

CANT

08/05/16NO CHANGECANT

Cerus should be bought after results, says Cantor

Cantor analyst Bryan Brokmeier recommends buying Cerus stock after the company reported Q2 results that he calls "solid." The analyst says that the company's regulatory program for red cells is on track. He keeps a $9 price target and Buy rating on the shares.

08/03/16

CANT

08/03/16NO CHANGETarget $9CANTBuy

Cantor sees Zika headlines as catalyst for Cerus shares

Cantor Fitzgerald analyst Bryan Brokmeier recommends buying shares of Cerus ahead of tomorrow's Q2 earnings report. The analyst believes the growing awareness and fear of Zika, especially during the Olympics, which start on August 5, may drive shares of companies that are involved in combating Zika higher. He reminds investors that Cerus offers the only FDA approved pathogen inactivation technology and was recently included in the agency's guidance document for reducing the risk of transfusion-transmission of Zika. The greatest opportunity for Cerus is on the Gulf Coast, which provides $29.7M and $26.2M of revenue opportunities for platelet and plasma, respectively, Brokmeier tells investors in an intraday research note. He keeps a Buy rating on the shares with a $9 price target.

CEMIChembio Diagnostics

$7.33

-0.05 (-0.68%)

08/02/16

CHLM

08/02/16NO CHANGETarget $10CHLMBuy

Chembio could double revenue based on Zika opportunity, says Craig-Hallum

Craig-Hallum analyst Bill Bonello believes Chembio Diagnostics shares can double over the next two years as the $1.5B rapid test market shifts from traditional technology to Chembio's proprietary DPP technology, adding that he think's Chembio could double revenue based on the Zika opportunity alone. The DPP technology is on the market today for detection of STD's, but that opportunity is "dwarfed by fever illness," Bonello tells investors. The firm reiterates its Buy rating and $10 price target on Chembio shares.

11/04/15

11/04/15INITIATION

On The Fly: Analyst Initiation Summary

Today's noteworthy initiations include: Allegiance Bancshares (ABTX) initiated with a Market Perform at Keefe Bruyette... BioDelivery Sciences (BDSI) initiated with a Buy at Cantor... Cabela's (CAB) initiated with an Overweight at Barclays... Cara Therapeutics (CARA) initiated with a Buy at Cantor... Chembio Diagnostics (CEMI) initiated with a Speculative Buy at Benchmark... Depomed (DEPO) initiated with a Buy at Cantor... Dick's Sporting (DKS) initiated with an Equal Weight at Barclays... Egalet (EGLT) initiated with a Buy at Cantor... Flexion (FLXN) initiated with a Buy at Cantor... HP Enterprise (HPE) initiated with a Buy at UBS... HP Inc. (HPQ) initiated with a Neutral at UBS... Opexa Therapeutics (OPXA) initiated with a Buy at Chardan... Smith & Nephew (SNN) initiated with a Neutral at Sterne Agee CRT... Stryker (SYK) initiated with a Neutral at Sterne Agee CRT... The Medicines Co. (MDCO) initiated with a Buy at Chardan... Tonix Pharmaceuticals (TNXP) initiated with a Buy at Cantor... Vail Resorts (MTN) initiated with a Buy at Janney Capital... Wright Medical (WMGI) initiated with a Buy at Sterne Agee CRT... Zimmer Biomet (ZBH) initiated with a Buy at Sterne Agee CRT.

11/04/15

BNCH

11/04/15INITIATIONTarget $6BNCHSpeculative Buy

Chembio Diagnostics initiated with a Speculative Buy at Benchmark

Target $6.

NLNKNewLink Genetics

$15.73

1.04 (7.08%)

05/10/16

RHCO

05/10/16DOWNGRADERHCONeutral

NewLink Genetics downgraded to Neutral from Buy at SunTrust

05/10/16

CANT

05/10/16NO CHANGETarget $20CANTBuy

NewLink Genetics price target lowered to $20 from $62 at Cantor

Cantor Fitzgerald analyst Mara Goldstein noted that NewLink Genetics' IMPRESS trial failed to meet its OS endpoint and said the results suggest little chance of a salvageable outcome, but thinks that the company's IDO platform can be "an important valuation backstop" for the shares and is well discounted after the post-failure pullback. Goldstein cut her price target on NewLink to $20 from $62, but maintains a Buy rating on the stock, citing the potential for the IDO platform as well as the company's Ebola vaccine.